According to Wu Blockchain, Curve Finance founder Michael Egorov submitted a proposal on the Curve governance forum stating that the CRV-long LlamaLend market incurred bad debt following the market crash on October 10, 2025. Approximately 70% of the vault assets are backed, leaving a gap of around $700,000. Egorov proposed leveraging LlamaLend's internal mechanisms to open a special liquidity pool for vault token redemption, allowing the free market to clear undercollateralized loans and recover bad debt. This mechanism is fully permissionless and does not require behind-the-scenes agreements, with Curve DAO able to participate but not mandatory. Egorov mentioned that he has established a Curve stableswap pool with an A parameter of 2, concentrating liquidity around a repayment rate of approximately 71%, with a swap fee of 1%. He requested Curve DAO to approve the gauge for the liquidity pool used for vault token redemption. Market participants can explore related opportunities, and arbitrage traders can develop bots for trading. https://(wublock123.com)/news/michael-egorov-crv-long-llamalend-market-bad-debt-recovery-proposal-60133